Malaysia Capital Market Case Study

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Questions 1
a) Latest development in the Malaysia bond and equity markets. Capital market which includes bond and equity market in Malaysia plays an important role in financing the economy and remains strong despite in the environment of global uncertainties for the past few years. According to the annual report of Securities Commission Malaysia, the capital market’s value is grew by 10.5% to RM 2.73 trillion in 2013 and continue grew to RM 2.76 trillion in 2014. Besides, the capital market continue to be the major source of financing which capital-raising reached over RM90 billion for three consecutive years from 2012-2014 through initial public offerings and private debt securities. According to data from Bank Negara Malaysia, the fund raising activity of capital market declined from RM45.3 billion in first quarter to RM37.2 billion in third quarter of 2015. However, it can be sure that the fund raised from capital market will also exceed RM90 billion this year adding the amount of RM53.9 billion in second quarter. The Islamic capital market also grew to RM1.59 trillion in 2014 while Malaysia retained as the largest sukuk market in the world, accounting to 66% of global issuances in 2014.
In a closer perspective, bond market’s size is rise from RM 1.03 trillion in 2013 to RM 1.1 trillion in 2014. Malaysia’s bond market also
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From the table 5.6 of the economic report, we can clearly see that the newly issued of debt securities amount to RM69, 655.3 million from public sector and RM40, 475.5 million from private sector which totalling of RM110,130.8 million in January to August 2015. On the other hand, the new issued of shares in equity market amount to RM9, 772.4 million in the same period. This indicates that the size of bond market is 11.27 times larger than the equity market in January to August of

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